Europe midday: Stocks mired in the red despite soft euro
Stocks are holding lower amid talk of 'profit-taking' and 'sector rotation' as investors adjust their portfolios in anticipation of tax cuts and tighter monetary policy on the other side of the Pond, alongside caution towards the outlook for growth in China and heavy selling on the Japanese and Hong Kong bourses.
"Global equities are lower, but to differing degrees. The UK FTSE is almost back flat, thanks to fresh GBP weakness amid uncertainty about whether a Brexit deal will or not be had this week. The German DAX underperforms due to EUR strength (versus GBP) and general risk-off, especially among industrial/consumer exporters.
"US futures are extending yesterday's declines amid continued rotation from tech on uncertainty about US tax reform," said Mike van Dulken, head of research at Accendo Markets.
As of 1257 GMT, the benchmark Stoxx 600 was down by 0.48% or 1.91 points to 384.83, alongside a fall of 0.88% or 115.59 points to 12,932.84 for the German Dax and a decline of 0.44% or 98.96 points to 22,317.48 on the FTSE Mibtel.
In parallel, euro/dollar was dipping 0.12% to 1.1816.
From a sector standpoint, the Stoxx 600's technology gauge was retreating by 0.96% or 4.21 points to 434.50 with another sub-index linked to Basic Resources down by 0.61% or 2.59 points to 424.79.
Further afield, overnight Japan's Nikkei-225 gave back 1.97% to trade at 22,177.04 while the Hang Seng erased 2.14% to 28,224.80.
To take note of, as part of their drive to combat pollution, overnight Chinese authorities extended some of their curbs on the production of ferroalloys, carbide and silicon carbide.
Meanwhile, in economic news, German factory orders grew by 0.5% month-on-month in October (consensus: 0.2%), despite a sharp 1.2% drop in those coming from the euro area, according to the Ministry of Finance.
Later in the day, at 1330 GMT, investors were expecting US labor productivity and unit labour cost figures for the third quarter.
On the corporate side of things, German outfit Delivery Hero announced plans to raise €686m in fresh equity from investors to finance acquisitions.
Also in Germany, an attorney for the US president said Deutsche Bank had not received any subpoena for the financial records of the president or his family as part of the FBI's ongoing inquiry into Russian activities during and around the US elections.